How Bankruptcy Changes When a Married Couple Files Jointly

Are you currently considering filing for bankruptcy, and you and your spouse are planning to file together? Whether you are thinking about a Chapter 7 bankruptcy or Chapter 13 bankruptcy case in South Florida, you may be able to file a joint petition — known as filing jointly — with your spouse. If you do want to file jointly, how will this impact your bankruptcy case? Generally speaking, filing jointly can save spouses costs associated with two separate bankruptcy cases and can double several exemptions, but both spouses will need to be eligible for the type of bankruptcy they want to file. Our South Florida bankruptcy attorneys can explain some of the key considerations in filing a joint bankruptcy petition.

Only Pay Costs Associated with One Bankruptcy Case

One of the major benefits of filing a joint bankruptcy petition is that you will only have to pay the costs associated with one bankruptcy case while both you and your spouse can file. Costs for bankruptcy vary depending on the type, but you will need to pay the filing fee and certain court fees in addition to costs for required credit counseling and debtor education courses.

Several Exemptions Can Be Doubled

When spouses file jointly for bankruptcy in Florida, they can be eligible to double several exemptions. The motor vehicle exemption and personal property exemption can be doubled, which can allow the couple to keep more of their property in a Chapter 7 case or lower the total amount of their repayment plan in a Chapter 13 bankruptcy case. It is important to discuss relevant exemptions with a lawyer and whether they can be doubled in a joint filing.

Both Spouses Must Meet Eligibility Requirements

In order for spouses to file a joint bankruptcy petition, they must together meet the eligibility requirements. This typically only becomes an issue for a Chapter 7 bankruptcy in which one spouse might be able to pass the “means test” but the other earns too much to be eligible for a liquidation bankruptcy.

Complications May Arise for Divorcing Spouses 

Finally, if you and your spouse are considering a reorganization bankruptcy under Chapter 13 (or Chapter 11, if you have too much debt to qualify for Chapter 13), complications may arise if you are also planning to divorce. A Chapter 13 case usually lasts for three to five years, which will tie your finances to your spouse’s for that period of time. If divorce is imminent, you will likely want to consider separate bankruptcy filings.

Contact Our West Palm Beach Bankruptcy Lawyers Today for Help with Your Personal Bankruptcy Filing

Are you planning to file for personal bankruptcy as an individual or jointly with your spouse? It will be important to discuss your eligibility for particular types of consumer bankruptcy with a lawyer who can assist you, and to speak about the doubling of exemptions for a joint bankruptcy filing. One of the experienced West Palm Beach bankruptcy attorneys at Kelley Kaplan Delaney & Eller, PLLC can provide you with more information about personal bankruptcy options in South Florida for individuals and married couples, and we can begin working with you on your bankruptcy case as soon as you are ready to file. Contact our firm today.

Sources:

law.cornell.edu/uscode/text/11

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0200-0299/0222/0222.html